The S&P 500 slipped 0.1 per cent after wavering between small gains and losses. The benchmark index set a record high last Tuesday and is up 14 per cent so far this year.
The Dow Jones Industrial Average rose 0.4 per cent, and the Nasdaq composite fell 0.4 per cent.
Shares in roughly 64 per cent of the companies in the S&P 500 rose, led by communication services stocks. Meta Platforms rose 3.4 per cent, T-Mobile added 2.2 per cent, AT&T gained 1.4 per cent and Verizon Communications rose 2.7 per cent.
Energy stocks had some of the biggest gains as oil prices kept rising. Chevron rose 1.4 per cent.
Chipmakers pull the market into the red
Despite those gains, a slide in big technology stocks dragged the market into the red.
Micron Technology fell 3.9 per cent, Advanced Micro Devices dropped 2.3 per cent, Broadcom slid 1.9 per cent and Nvidia gave up 1.3 per cent. They are among several companies in the sector with big stock values that tend to have a heavy influence on the market. They have also been the driving force behind the broader market's record gains throughout the year.
Those companies could face more scrutiny from investors during this round of corporate earnings as Wall Street tries to get a better sense of whether the stock gains made during the frenzy over artificial intelligence can translate into future growth.
Stocks are reaching for records often because of the tech sector, but remain very volatile on a daily basis, partly because of big shifts in oil prices and their impact on bond yields and inflation.
Brent crude climbs back above US$106
The price of Brent crude, the international standard, rose 1.8 per cent to settle at US$106.65 per barrel. Prices have been swinging between US$96 and nearly US$110 over the last month over uncertainty about the US war with Iran and its continued impact on global energy supplies and inflation.
Prices jumped despite President Donald Trump's announcement on social media Friday that he struck a deal to buy Russian diesel with Russian President Vladimir Putin, aiming to tamp down a spike in fuel prices ahead of the 3 November US midterm elections.
Inflation figures are this week's big test
The surge in energy prices and its impact on the broader economy will be a key focus this week as Wall Street reviews several important economic updates. They include fresh data on the housing market, inflation and retail sales.
The biggest updates involve reports about inflation hitting consumers and businesses. On Wednesday, the government will release the closely-watched consumer price index, or CPI, which measures price changes for a wide range of products and services. Economists expect the index to show the rate of inflation worsened to 3.6 per cent in September from 3.4 per cent in August.
A report on inflation called the producer price index will be released on Thursday and is also expected to show that inflation remains stubbornly high. It measures inflation faced by businesses before it hits consumers.
An update on how consumers are reacting to high prices will be released on Thursday. Economists expect the report on retail sales for September to show that households pulled back on spending.
The rate of inflation by any measure remains well above the Federal Reserve's target rate of 2 per cent. That prompted the central bank to raise its benchmark interest rate at its last meeting in an effort to cool inflation. Wall Street expects another rate hike before the year ends.
Inflation and expectations for high interest rates have been driving Treasury yields higher in the bond market. The 10-year Treasury yield, which influences mortgage rates, recently touched its highest level since 2002. It has since eased a bit and stood at 5.24 per cent late Friday. US bond trading was closed Monday for the Columbus Day holiday.
Higher mortgage rates have been weighing on the housing market and Wall Street will get an update on home sales on Tuesday.
US banks open the earnings season
The latest round of corporate earnings updates ramps up this week with financial results from banks. Citigroup, JPMorgan Chase and Wells Fargo will report their results on Tuesday and Bank of America will report its results on Wednesday. They have been reporting record profits throughout the year and Wall Street expects more of the same for the latest quarter.
Markets in Europe gained ground and markets in Asia were mostly lower. Markets in Tokyo were closed for a holiday.
All told, the S&P 500 fell 4.30 points to 7,807.24. The Nasdaq dropped 120.27 points to 27,245.90. The Dow gained 195.60 points to close at 51,850.55.
